216-292-2950 [email protected]

Brad Wheeler
VP, Director of Business Development

Most investors are familiar with mutual funds and exchange traded funds (ETF) and many have a large percentage of their overall portfolio invested in them. Mutual funds and ETFs are pooled investment vehicles registered with the SEC and subject to certain rules and regulations. These two investment types are comprised of individual securities, like stocks and bonds, and provide exposure to both niche markets and a wide variety of asset classes, and are easily available for purchase for small investment accounts. Mutual funds are generally actively managed by professional asset managers while ETFs are usually passively managed to replicate a specific market index, like the S&P 500. An alternative investment vehicle to a mutual fund or ETF which may not be as well-known, but we believe is superior in many ways, is a separately managed account or SMA.

Historically, SMAs have had large account minimums and have been used primarily by large institutions and the very wealthy. However, with advances in technology, the use of model delivery platforms, and dramatic decreases in transaction fees across the industry, SMAs minimums have dropped drastically (as low as $50,000 for Shaker’s strategies) and are poised for more mainstream adoption. SMAs have many of the same characteristics as mutual funds and ETFs with one primary difference: SMAs are not a pooled investment vehicle, but an account owned by an investor with individual positions held in the account. This means that an SMA investor owns the assets in the account directly as opposed to owning shares of a mutual fund or ETF with underlying ownership. This structure allows for more flexibility, transparency, and tax efficiency for the SMA investor.

Greater flexibility

One of the benefits of investing in SMAs is investors have direct ownership of the assets purchased in their accounts. Direct ownership of assets allows SMA investors greater flexibility to dictate the holdings in the account. Investors can work through their investment advisor or directly with the SMA portfolio manager to make decisions on account holdings. This is beneficial if investors wish to avoid certain sectors, industries, or individual securities to which they may already have exposure. For example, consider high level executives at Progressive Insurance. They may wish to avoid additional exposure to the financial service sector, the insurance industry, or Progressive Insurance public equity due to already high exposure to those things through their employer.

Value-based investing

Many investors want their portfolios to reflect their values. One of the fastest growing trends in the industry is ESG investing, which is evaluating companies on environmental, social, and governance factors in addition to traditional investment factors to make investment decisions. Flexibility in an SMA allows investors to avoid investing in companies to which they have a moral objection, for example avoiding handgun manufacturing companies because of their impact on public safety.

Better tax management

In a mutual fund, capital gains accrued from trading activities of the fund manager are passed through to all the investors in the fund. Mutual fund holders are often surprised to learn that they have realized gains at the end of the year despite having not sold any shares of the mutual fund they own. With an SMA, an investor is only taxed on the realized gains specific to his or her account.

There are many techniques portfolio managers can use to create tax alpha in a SMA portfolio that cannot be utilized in a mutual fund. One way portfolio managers can minimize capital gains taxes for the year is tax loss harvesting. Tax loss harvesting is selling a position that has gone down in value since the original purchase, realizing a loss to offset some gains. Portfolio managers must be cautious not to enter into a wash sale or purchasing the position back within 30 days.

Greater transparency

Unlike mutual funds who are only required to disclose their holdings on a quarterly basis, with a SMA portfolio, an investor sees every holding in the portfolio and every transaction the portfolio manager makes. Management costs can also be a cloudy area for mutual funds and ETFs where you must seek fund prospectus to identify the costs of each fund. SMAs offer maximum transparency since they post an individual transaction for each management fee payment. Broad portfolio reporting from the SMA custodian and professional portfolio manager provides investors with a lot of useful information about their investments on a monthly or quarterly basis. With the prevalence of online brokerage accounts investors have access to this information almost instantaneously.

Access to the portfolio manager

Direct access to the portfolio manager is considered essential by most sophisticated investors. Conversations with portfolio managers can be central to understanding an investment strategy. A major benefit for SMA investors is the ability to have a working relationship with the portfolio manager. In fact, the advantages mentioned above are highly reliant on investors communicating with the portfolio manager. This level of access and service is rarely offered by mutual funds and ETFs. Fund portfolio managers are usually only available for the largest investors, and everyone else must speak to a sales representative, or worse, a call center. If access is a priority, it is important to choose a manager that you know and trust, and that will be responsive to your inquiries. Additionally, conducting your own research and due diligence as an investor, just as you would with managers of your mutual fund or ETF, is essential to the process.

At Shaker Investments, we have been offering this vehicle to our clients since the firm’s inception. We believe SMA’s offer clear advantages over other investment vehicles for those who meet the account minimums, want more control and customization of their portfolios. Every client is unique and your portfolio should be equally individualized and aligned with your personal financial goals.

It's a Popup Test

Andrew Frye

Research Analyst

Andrew first joined Shaker in 2022 as an intern on the research team. Following his internship, Andrew accepted a full-time position with Shaker Investments as a Research Analyst. Andrew’s primary role is to work with the Portfolio Managers on monitoring existing ideas, tracking competitors, and new idea generation. Andrew brings an analytical approach to modeling companies.

Prior to joining Shaker Andrew worked as a summer analyst intern with Progressive Insurance in the Real Estate Control Group. Andrew received his BA in Economics, Political Science, and Business Management and his Masters of Business Analytics and Intelligence from Case Western Reserve University.

Ashley Arsena, CFP®

Senior Business Development and Client Service Officer

Ashley's journey with Shaker began in 2016 where she quickly established herself to be an integral part of the team. From handling operations to executing trades and providing top-notch client services, Ashley has showcased her versatile skill set. Currently, a vital member of the Business Development and Client Services team, she dedicates her days to building strong relationships with both existing and potential clients.

Ashley is a CERTIFIED FINANCIAL PLANNERâ„¢ professional. She has earned a Certificate in Financial Planning from New York University School of Professional Studies and received her BA in Business Management from Baldwin Wallace University with a minor in Human Resources.

Ashley was recognized on AdvisorHub's 100 Women Advisors to Watch in 2024 (#29) and Top 50 Woman Advisors to Watch in 2023 (#48). She has also been recognized as a Five Star Wealth Manager by Five Star Professional in 2024.

Ashley currently serves on the board of Hope for Kids Geauga. She is also an active member of CFA Society of Cleveland, serving as a member of the Women's Advisory Committee.

Ashley lives in Bainbridge with her wife Jessica and young children Connor and Avery.

*Participating in the ranking is free and AdvisorHub received no compensation from participating advisors. To read more about Advisor Hub's methodology and to view the full list please click here.

Chris Hemmelgarn

Portfolio Manager and Research Analyst

​Chris is a Portfolio Manager and Research Analyst at Shaker Investments. He is responsible for researching new and existing investments as well as portfolio management at Shaker Investments. He joined Shaker in 2017 and covers a range of companies and sectors with a focus on technology, financial services, energy, and utilities.

Prior to joining Shaker Investments, Chris worked in Sell-Side Research as a Vice President at Barclays covering Semiconductors. His primary responsibilities included company and market analysis and forecasting, publishing research, client marketing, and relationship management of company and industry contacts. He also worked as an Associate at Morgan Stanley developing and analyzing business management metrics.

Chris earned his MBA (with Distinction) specializing in Finance and Corporate Finance at the NYU Stern School of Business. He also received his BSFS in International Politics from Georgetown University.

Chris is an avid golfer and cook, and is learning the joy of maintaining a 100-year-old home after a decade plus in Manhattan apartments.

Sasha A. Kostadinov, CFA

Portfolio Manager and Research Analyst

Sasha is co-manager of the Small Cap Portfolio and conducts research on consumer discretionary, consumer staples, materials, and health care sectors for all of the portfolios at Shaker Investments. He has spent more than twenty years working in the equity markets, the last nineteen with Shaker Investments.

Prior to joining Shaker Investments, he was a research analyst at Clarion Group, a Cleveland, Ohio-based long-short hedge fund. Prior to that, he was a research analyst at KeyBanc Capital Markets (formerly McDonald Investments). Prior to that, Sasha was a Financial Consultant at Smith Barney.

Sasha is a holder of the Chartered Financial Analyst designation and received his BA in Economics and Political Science and MA in Economics at Cleveland State University.

He and his wife, Ruthann, reside in Lakewood with his guitars.

Raymond J. Rund

Managing Director, Senior Research Analyst

Ray is the Senior Research Analyst and has been covering the technology and industrials sectors since joining Shaker Investments in 1996. 

Prior to joining Shaker Investments, Ray was a General Partner in an early-stage venture capital partnership for nine years, where he organized the first round of venture funding for RF Micro Devices and served on their board for six years prior to the company’s IPO. In 2015 RF Micro merged with Triquint Semiconductor to become Qorvo, a leading supplier of integrated circuits used in wireless communications.  Ray also headed marketing at Keithley Instruments, was a consultant at McKinsey & Company, and worked in engineering and marketing for Intel. Early in his career Ray worked as an engineer for Combustion Engineering and Westinghouse Electric in Pittsburgh.

Ray currently serves on the Investment Committee of the Harvard Business School Club of Northeast Ohio, is a member of the Finance and Investment Committee of the Jewish Federation of Cleveland, and serves on and was former chair of the Retirement Fund Committee for the Jewish Federation of Cleveland.

Ray earned his BS, magna cum laude in Engineering & Applied Science at Yale University, an MS in Electrical and Computer Engineering at Carnegie Mellon University, and an MBA from Harvard University.

Ray is a long time Clevelander, and an avid Lake Erie sailor. He and his wife Jeanne live in Shaker Heights where they enjoy being close to their three adult children and grandson. 

Kacie Wick

Chief Compliance Officer

Kacie joined Shaker Investments in 2011 as the company’s controller. In 2022, Kacie was promoted to Chief Compliance Officer. She brings over 20 years of professional experience in operational and financial management for various for-profit and non-profit organizations in Boston and Cleveland.

Prior to joining Shaker Investments, she was Director of Clinical Research Administrative Operations in the School of Medicine at Case Western Research University where she managed a research grant portfolio of over $40 million. She has also worked as the Director of Finance for the Weatherhead School of Business at Case Western Reserve University, Director of Operations at Village Preparatory School; Operations Manager at Northeast Ohio Council on Higher Education; and Center Financial Manager at Education Development Center.

Kacie received her Masters of Accounting from Case Western Reserve University, where she graduated magna cum laude and her BS in Management from Babson College in Wellesley, MA. Kacie is currently working towards her Investment Advisor Certified Compliance Professional (IACCP) designation.

Kacie currently serves as a trustee for the Tod Homestead Cemetery in Youngstown, Ohio and is a former treasurer for her local girl scout Troop 70204 and the Onaway PTO. She lives in Shaker Heights with her two daughters.

Brandon A. Hemmelgarn

Co-Chief Investment Officer and Portfolio Manager

Brandon is the co-Chief Investment Officer at Shaker Investments. With over 14 years of industry experience, Brandon leads the investment team at the firm. He is also responsible for researching new and existing investments and portfolio management for all three of the firm’s strategies. Prior to being promoted to co-Chief Investment Officer in 2020, Brandon was a Portfolio Manager and Research Analyst at the firm for 8 years. He covers a range of companies and sectors including technology, consumer products and services, industrials, and materials.

Prior to joining Shaker, Brandon worked on the investment team at Audax Group, a Boston-based private equity firm focused on growing middle market companies.

Brandon is a former board member of the Washington Association of Money Managers and the Private Equity Association of Boston.

Brandon received his BA, summa cum laude, in Economics from Princeton University and is a Registered Investment Advisor Representative (FINRA Series 65). He and his wife, Shelby, reside in Arlington, Virginia, with their sons Thomas and Ted. When time permits, Brandon still enjoys lacing up his skates and taking to the ice rink.

Bradley Wheeler

President

Brad Wheeler is the President of Shaker Investments.  With more than twenty-five years of experience in the financial service industry, he is responsible for overseeing the firm’s strategy, business development and operations.  Prior to being named President, Brad served as Vice President and Head of Business Development for Shaker.  He has spent over twenty years in the financial service industry calling on endowments, pension funds and institutional investors.

Prior to joining Shaker Investments, Brad was a founding partner at Cleveland Research Company where he developed institutional relationships with clients in Boston and opened the firm’s London office.  Prior to that, Brad was a partner with FTN/Midwest Research and worked at US Bank in commercial banking.

Brad is currently a member of the Association for Corporate Growth in Greater Cleveland.  He is the prior President of the Shaker Youth Hockey Association and Shaker Heights High School Sports Boosters.

Brad received his BA in Public Finance from Miami University and an MBA from Case Western Reserve University, Weatherhead School of Management.

He and his wife, Laura, reside in Shaker Heights and have two adult children.

Edward P. Hemmelgarn

CEO & Co-Chief Investment Officer

Edward Hemmelgarn is the CEO and Co-Chief Investment Officer at Shaker  Investments. Edward’s primary focus is leading the investment team as well as portfolio management for all three of Shaker’s strategies. His research focus includes healthcare, financial services, and real estate.

Prior to founding Shaker Investments in 1991, Edward was the Chief Financial Officer of Retail Banking at Ameritrust Corporation (now KeyBank). Prior to that, Edward worked at Ernst & Young focusing on mergers and acquisitions and strategic and financial management consulting.

He received a BA in Chemistry and a MBA from the Case Western Reserve University, where he also served as an instructor for numerous courses. Mr. Hemmelgarn is a former CPA.

Edward is currently a board member at the Cleveland Museum of Art. Edward is also on the Visiting Committee of Case Western Reserve University’s College of Arts and Sciences. He is a past recipient of the Outstanding Alumni Award from Case Western Reserve University’s Weatherhead School of Business. He was named Accounting Alumnus of the Year in 2003, and a recipient of Case Western Reserve University’s Department of Chemistry’s Distinguished Alumnus Award in 2016.

Edward and his wife, Jan, reside in Shaker Heights.